Bitcoin, XRP Prices Edge Up. The Crypto Rally Faces These Threats.

By Elsa OhlenBitcoin and other cryptocurrencies were little changed early Friday as traders attempted to predict where the value of digital assets were going next.The world's largest crypto, Bitcoin, is up a modest 1.6% in past 24 hours to last trade at $93,617, according to CoinDesk data. It had a slight pullback Thursday after rallying past the $94,000 mark, which several crypto analysts attribute to profit-taking as the price reached a seven-week high.Among other digital coins, XRP and Ether climbed about 1% each, while Solana and Dogecoin had bigger gains of about 5%.Some in the industry suggest Bitcoin might have limited upside going forward given the shaky macroeconomic conditions and uncertainties around the Trump administration's tariffs policy.On Thursday, Bitcoin started to reverse its multiday growth trend. Current market outlook suggests the rally might not be sustainable, Innokenty Isers, CEO at Paybis, a crypto exchange, said."In the last two months, the uncertainty around the tariff war triggered an unusual concern for investors as many decided to temporarily steer clear of more volatile assets like Bitcoin," Isers said. "Adding to this, the Federal Reserve has spotlighted the inflationary risks the tariff war may introduce."However, the cryptocurrency remains well-supported and is currently consolidating above $92,000, said George Pavel at trading platform Naga.com, noting that institutional demand is accelerating and net inflows into U.S. spot Bitcoin ETF's are high."Volatility could remain high as investors react to developments around U.S. policies and economic outlook," he added.Write to Elsa Ohlen at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.